Municipal Accommodation Tax

The City of Mississauga passed By-Law 0023-2018 to implement a mandatory 4% Municipal Accommodation Tax (MAT) effective April 1, 2018. The MAT will apply to the purchase of the accommodations provided for a continuous period of 30 days or less.

The MAT must be identified as a separate item or charge on each bill, receipt invoice etc.

Frequently Asked Questions

For Accommodation Providers

The Municipal Accommodation Tax rate is 4% and must be applied to accommodations provided for a continuous period of 30 days or less. The tax is applied to only the accommodation and should not be applied to other fees such as valet parking, laundry service, continental breakfast etc.

The Municipal Accommodation Tax must be collected beginning April 1, 2018.

The Municipal Accommodation Tax is a mandatory tax and must be paid to the accommodation operator at the same time that you pay for the booking.

City of Mississauga By-Law 0022-2018 - A By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Mississauga.

Accommodations that are rented for a period of more than 30 days

Accommodations that are paid for by employees of the Crown receiving a "government rate" for the accommodation

Accommodations that are paid for by employees of the School Board receiving a "school board rate" for the accommodation

Accommodations provided as shelter

Accommodation supplied by employers to their employees in premises operated by the employer

The following charges are exempt from the tax:

Hospitality rooms in an establishment that may or may not contain a bed and is used for displaying merchandise, holding meetings, or entertaining and not being used for accommodation

It is the City's understanding that the accommodation provider is responsible for collecting and remitting the HST on the entire charge, including the MAT however, it is suggested to contact the Canada Revenue Agency to confirm this information.

No. The tax is only applied to a room that is being used for accommodation. However, the tax is exempt when a room that may or may not contain a bed is being used for displaying merchandise, holding meetings, or entertaining and not being used for accommodation.

The by-law reads "A Purchaser shall, at the time of purchasing Accommodation, pay the Municipal Accommodation Tax in the amount of four (4) per cent of the Purchase Price of Accommodation provided for a continuous period of 30 days or less provided in a hotel, motel, motor hotel, lodge, inn, bed and breakfast, dwelling unit or any place in which Accommodation is provided"

Therefore, if the guest is being charged for the accommodation (no show included) the MAT should be collected and remitted, if not paying for the accommodation but rather a cancellation charge then it would not apply.

If the accommodation was booked and paid for prior to April 1, 2018, the tax will not be applicable. If it was booked before April 1, 2018 but paid for on April 1, 2018 or onwards, the tax is applicable.

The tax must be charged beginning April 1, 2018 only. Any nights prior to April 1, 2018 should not be charged the MAT.

Late payment fees will be charged at a rate of 1.25 per cent on the first day of default and the first of each month until paid.

Adjustments from prior reporting periods can be made in a future return.

If no tax was collected you will still be required to submit the return indicating that no tax was collected in that month.

The City has the authority to inspect and audit all books, documents, transactions and accounts of accommodation providers. Accommodation providers must keep books of account, records and all documents related to the sale of accommodations, amount of the Municipal Accommodation Tax collected and remitted to the City.

E-mail us at tax@mississauga.ca or call the Citizen Contact Centre 3-1-1, or if calling outside City limits call 905-615-4311.

For Guests

The Municipal Accommodation Tax rate is 4% and must be applied to accommodations provided for a continuous period of 30 days or less.

The 4% is applied to the cost of only the accommodation of a continuous period of 30 days or less and should not be applied to other fees such as valet parking, laundry service, continental breakfast etc.

The Municipal Accommodation Tax is a mandatory tax imposed by City Council through By-Law 0022-2018 - A By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Mississauga. By-Laws

No you cannot refuse to pay this tax. The Municipal Accommodation Tax is mandatory and must be paid to the accommodation operator at the same time that you pay for the booking.

If your accommodation was booked and paid for prior to April 1, 2018, the tax will not be applicable. If it was paid for on April 1, 2018 or onwards, the tax is applicable.

City of Mississauga By-Law 0022-2018 - A By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Mississauga.

E-mail us at tax@mississauga.ca if you need further assistance. Inquiries will be responded to within 10 business days or;

To reach the Citizen Contact Centre call 3-1-1, or if calling outside City limits call 905-615-4311.